Invoicing a Spanish company (IRPF) Thread poster: happylandyes
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Hello, I was wondering if anyone can shed any light on the following paragraph. It was written by a Spanish company I hope to do work for, regarding invoicing (I am based in the UK).
"If you are registered as a freelancer in the UK and wish to work for a Spanish company, you should tell the relevant UK authorities that you want to sign up to the International Agreement (convenio Internacional) regarding double taxation. They would provide you with a document certifying that you are ... See more Hello, I was wondering if anyone can shed any light on the following paragraph. It was written by a Spanish company I hope to do work for, regarding invoicing (I am based in the UK).
"If you are registered as a freelancer in the UK and wish to work for a Spanish company, you should tell the relevant UK authorities that you want to sign up to the International Agreement (convenio Internacional) regarding double taxation. They would provide you with a document certifying that you are a party to the agreement. If you are able to proffer this document, our company in Spain would charge 10% IRPF, but without said document we would have to charge you 24% (because of the IRPF that corresponds to the British Government.)"
I have read about VAT problems with Spanish clients, (insisting on a International VAT No.) but this IRPF matter is new to me. Does anyone know what International Agreement are they referring to, and what is this business of "double taxation"?
Many thanks. ▲ Collapse
| | | | Williamson 
United Kingdom
Local time: 18:39
Flemish to English
+ ...
| Ingreso sobre la Renta de Personas físicas. | Jun 10, 2011 |
http://es.wikipedia.org/wiki/Impuesto_sobre_la_Renta_de_las_Personas_Físicas_(España)
Ingreso sobre la Renta de Personas físicas. As far as I get it, it is a tax directly withheld at the source if you are in Spain and deliver goods/services to a direct customer.
I don't see why you should withhold 24%. This may be the U.K.'s gen... See more http://es.wikipedia.org/wiki/Impuesto_sobre_la_Renta_de_las_Personas_Físicas_(España)
Ingreso sobre la Renta de Personas físicas. As far as I get it, it is a tax directly withheld at the source if you are in Spain and deliver goods/services to a direct customer.
I don't see why you should withhold 24%. This may be the U.K.'s general tax-level, but what has Spain got to do with U.K.-taxes?
Spain does not like fiscally friendly places.
If for fiscal reasons, you decide to leave Spain and go to live in a fiscally friendly place such as London (not the UK)) you remain a tax-resident of Spain for the next 4 years.
IRPF is a Spanish issue, not a British one. With regard to taxes and VAT, the Spanish seem to have become somewhat paranoid.
[Edited at 2011-06-10 14:15 GMT] ▲ Collapse
| | | | | Document required by Spanish co. | Jun 12, 2011 |
Hi Willimason,
Thanks for your reply. I have paid IRPF whilst residing in Spain, I was surprised however, that it would be be applicable to a Bristish freelancer. Perhaps it is because of what you said:
"If for fiscal reasons, you decide to leave Spain and go to live in a fiscally friendly place such as London (not the UK)) you remain a tax-resident of Spain for the next 4 years."
This is news to me. I will have to try and investigate the implications of th... See more Hi Willimason,
Thanks for your reply. I have paid IRPF whilst residing in Spain, I was surprised however, that it would be be applicable to a Bristish freelancer. Perhaps it is because of what you said:
"If for fiscal reasons, you decide to leave Spain and go to live in a fiscally friendly place such as London (not the UK)) you remain a tax-resident of Spain for the next 4 years."
This is news to me. I will have to try and investigate the implications of this.
I would love to hear from anyone who has been told a similar thing, and how they resolved it.
I.e. Has anyone else had to provide a document to a Spanish company, certifying that they are "signed up" to the International Agreement (convenio Internacional), regarding double taxation? How/where did they get this document?
Thanks ▲ Collapse
| | | | | 21% Spanish IRPF for UK freelancer | Jun 22, 2011 |
Hi,
I was wondering if anyone has any comments regarding the email I received from an accounts department in Spain. (They want to charge 21% IRPF on my earnings), but no VAT, weird. I have posted an extract below, in English and Spanish.
"Regarding the double taxation treaty with the UK: it is applicable to subjects fiscally resident in the UK, who carry out work liable for taxation in Spain. To clarify: under Spanish law, the IRPF (income tax?) for non-residents is set at 21... See more Hi,
I was wondering if anyone has any comments regarding the email I received from an accounts department in Spain. (They want to charge 21% IRPF on my earnings), but no VAT, weird. I have posted an extract below, in English and Spanish.
"Regarding the double taxation treaty with the UK: it is applicable to subjects fiscally resident in the UK, who carry out work liable for taxation in Spain. To clarify: under Spanish law, the IRPF (income tax?) for non-residents is set at 21% (if the double taxation treaty is applied, it is set at 10%). VAT is not applicable. To come under the double taxation treaty, (and have only 10% ratined) you would need a tax residency certificate, which would be issued by the tax authorities of the country where you live."
"...con respecto al convenio de doble imposición con el Reino Unido, es aplicable para sujetos cuya residencia fiscal sea el Reino Unido, y realicen en España algún tipo de labor sujeta a retención. Así pues según la legislación española la retención para no residentes tiene un tipo general del 21% (aplicando dicho convenio se queda en el 10%). En cuanto al IVA no ha lugar. Para poder acogerte a dicho convenio, necesitas un certificado de residencia fiscal , que será expedido por la autoridad fiscal del país donde residas." ▲ Collapse
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